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Yahoo
22-03-2025
- Business
- Yahoo
Canadian Real Estate Stocks Plummet: Is it Time to Sell or Buy?
Written by Amy Legate-Wolfe at The Motley Fool Canada The Canadian real estate market has been in a rough patch lately. Home sales dropped by 9.8% in February, the biggest decline since May 2022. The impact has been widespread, with about three-quarters of local markets feeling the pressure. Toronto and the surrounding areas have been hit especially hard, raising concerns about what comes next for the sector. For real estate investment trusts (REITs), the situation hasn't been any easier. These stocks, which provide exposure to rental properties, retail spaces, and other income-generating real estate, have been facing challenges. Higher interest rates, economic uncertainty, and shifting tenant demand have put pressure on valuations. Many investors are now wondering whether it's time to cut losses or look for long-term opportunities. So, let's look at some popular real estate stocks and where they land. One of the largest players in the space, Canadian Apartment Properties REIT (TSX: has a market capitalization of about $6.8 billion as of March 2025. CAPREIT owns a vast portfolio of rental properties across Canada and has historically been a go-to for investors seeking stable rental income. However, it hasn't been immune to the broader market struggles. In its latest earnings report, CAPREIT posted steady occupancy rates but flagged some concerns. Rising costs, a softer rental market in certain regions, and ongoing affordability issues have created uncertainty. The real estate stock is still generating income, but it remains to be seen how much growth it can achieve in the near term. Another major player, RioCan REIT, (TSX: specializes in retail and mixed-use properties. With a market cap of around $5.5 billion, it's one of Canada's largest real estate firms. The real estate stock has been working to transition beyond traditional shopping centres by adding residential units to its portfolio — a strategy aimed at offsetting challenges in the retail sector. Despite these efforts, its latest earnings report showed a slight dip in rental income. Some tenants are struggling, and while RioCan has long-term leases in place, it's clear the retail environment isn't as strong as it once was. SmartCentres REIT (TSX: is another real estate giant valued at about $4.4 billion. It has a strong presence in retail, particularly with Walmart-anchored shopping centres. This has provided some stability, but the real estate stock has also been pushing into residential and mixed-use developments to diversify its revenue streams. The latest earnings report showed resilience in its core business. Yet, like other REITs, SmartCentres is facing headwinds from higher interest rates and shifting consumer behaviour. The biggest question for investors is whether this downturn presents a buying opportunity or a warning sign to stay away. Real estate stocks tend to be highly sensitive to interest rate changes, and with rates remaining elevated, borrowing costs have made it more expensive for REITs to expand and refinance debt. If the Bank of Canada continues rate cuts, REITs could get a much-needed boost. But until then, many will remain under pressure. That said, some investors see long-term value. CAPREIT continues to collect steady rental income, RioCan's mixed-use strategy could pay off over time, and SmartCentres's diversification efforts may provide stability. For those willing to ride out the volatility, today's lower prices could be an opportunity to lock in strong dividends. For now, the real estate market remains uncertain, and not every real estate stock will recover at the same pace. Investors should be selective, looking for companies with strong balance sheets, reliable cash flow, and a clear strategy for weathering the current environment. While the market may look bleak today, those with patience could see brighter days ahead. The post Canadian Real Estate Stocks Plummet: Is it Time to Sell or Buy? appeared first on The Motley Fool Canada. Before you buy stock in Canadian Apartment Properties, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Canadian Apartment Properties wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $20,697.16!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*. See the Top Stocks * Returns as of 3/20/25 More reading Best Canadian Stocks to Buy in 2025 Here's Exactly How $15,000 in a TFSA Could Grow Into $200,000 4 Secrets of TFSA Millionaires Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy. 2025
Yahoo
19-02-2025
- Business
- Yahoo
2 Ultra High-Yield Stocks Canadians Can Buy Aggressively, and 1 to Steer Clear of
Written by Chris MacDonald at The Motley Fool Canada Investors seeking reliable income often turn to ultra-high-yield stocks offering dividend yields significantly above the market average. While high-yield stocks can provide steady income and long-term capital appreciation, it is essential to differentiate between those with sustainable payouts and those facing financial or operational challenges. Here, we highlight two ultra-high-yield Canadian stocks that are attractive buys and one that investors should avoid. BCE Inc. (TSX:BCE), commonly known as Bell Canada, is one of Canada's largest telecommunications companies, offering internet, mobile, television, and media services. With a strong market position and a long history of dividend payments, BCE remains an attractive option for income-focused investors. BCE currently offers a dividend yield above 12%, making it a solid choice for income-seeking investors. As a telecom giant, BCE benefits from consistent revenue generated from its broad customer base in essential services like internet and mobile connectivity. With the rollout of 5G networks and continuous expansion in fibre internet infrastructure, BCE is well-positioned for future growth. To maintain profitability and sustain its dividend payouts, the company has implemented aggressive cost-cutting initiatives, including workforce reductions. Despite its strong fundamentals, BCE faces challenges, including rising capital expenditures and increased competition in the telecom sector. However, its ability to generate strong cash flows offsets these concerns, making it a compelling buy for income investors. SmartCentres REIT (TSX: is one of Canada's largest real estate investment trusts (REITs). It specializes in retail and mixed-use properties. With a portfolio that includes Walmart-anchored shopping centres and major urban developments, SmartCentres REIT provides investors with a stable income stream. SmartCentres REIT offers a high dividend yield exceeding 7%, making it one of the best income-generating stocks in Canada. In addition, a significant portion of its properties is anchored by essential retailers like Walmart, ensuring reliable rental income. SmartCentres is expanding beyond retail into residential and office spaces, which enhances long-term growth potential. Despite market fluctuations, the REIT has maintained high occupancy levels, showcasing the demand for its properties. While retail REITs are susceptible to economic downturns and e-commerce disruption, SmartCentres' strategic expansion into mixed-use properties provides a diversified revenue stream, making it a strong pick for dividend-focused investors. TELUS Corporation (TSX:T) is another major telecommunications player in Canada, offering services in mobile, internet, and digital healthcare. While TELUS has historically been a solid investment, recent challenges raise concerns about its dividend sustainability and financial health. Telus has been aggressively investing in infrastructure and acquisitions, leading to a significant increase in debt. While Telus has a high dividend yield of approximately 7%, there are growing fears that its cash flow may not be sufficient to support continued payouts at current levels. The company's recent earnings reports have shown declining profit margins and slower revenue growth. With intense competition in the telecom sector and ongoing pricing pressures, Telus may struggle to maintain profitability in the long run. While Telus remains a well-known brand in Canada, its increasing debt burden, slowing revenue growth, and potential dividend risks make it less attractive than BCE. Investors looking for telecom exposure would be better off with BCE, which has stronger financial stability and growth prospects. The post 2 Ultra High-Yield Stocks Canadians Can Buy Aggressively, and 1 to Steer Clear of appeared first on The Motley Fool Canada. Before you buy stock in BCE, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and BCE wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $18,750.10!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 35 percentage points since 2013*. See the Top Stocks * Returns as of 1/22/25 More reading 10 Stocks Every Canadian Should Own in 2024 [PREMIUM PICKS] It's Time to Buy: 1 Canadian Stock That Hasn't Been This Cheap in Years Where to Invest Your $7,000 TFSA Contribution 3 No-Brainer TSX Stocks to Buy With $300 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends SmartCentres Real Estate Investment Trust and TELUS. The Motley Fool has a disclosure policy. 2025
